China’s economic success and trade expansion since the 1980s is one of the most important economic achievements, which lifted more populations out of extreme poverty than any other time and place in history. This achievement has been made possible by trade-led development policies successfully adopted by China. China also joined the WTO in 2001, after fifteen years of negotiations with its trade partners, and is subject to WTO legal disciplines requiring the transparency of its trade-related decisions and procedures. This article examines China’s economic reform, which led to its accession into the WTO, and reviews China’s trade and development policies under the WTO. In addition, this article discusses China’s participation in the WTO Dispute Settlement Procedure. There has been a concern as to whether China will be compliant with the requirements under the Dispute Settlement Understanding (DSU). The article shows that China has become an active participant and has maintained well under the terms of the DSU.

1. Introduction
2. China’s Foreign Trade Initiatives: From the ‘Open Door’ to the WTO
    A. Trade Reforms under Deng Xiaoping
    B. China’s Commitments under the WTO
    C. Compliance Issues
    D. China’s Participation in the WTO Dispute Settlement Process: From Passive Rule-Taker to Active Player with a Leadership Potential
3. China’s Trade Policies in the Context of Economic Development
    A. ‘Gradual’ Liberalization
    B. Moving Up on the Global Value Chains
    C. China’s Initiatives on RTAs and Additional Economic and Trade Integration
4. Conclusion
References

• Yong-Shik Lee(Law and Development Institute)
• Xiaojie Lu(Law at Tsinghua University School of Law, Kyushu Univ.)